Guidelines for institutions and resolution authorities on improving resolvability (EBA/GL/2023/05)

1. Overview

1. Compliance and reporting obligations

2. Subject matter, scope and definitions

3. Date of application

4. Amendments to the Resolvability Guidelines

a. Self-certification	Where the institution self-certifies its compliance with a rule. A self-assessment is the assessment by the institution of its own capabilities to perform the tasks requested in a timely manner and to meet the quality expected. Self-assessment assumes a review of the existing processes and procedures,
b. Self-assessment	and potentially a review of the lessons learnt from past stress situations. A self-assessment results in a gap analysis between what the institution’s capabilities and the authority’s expectations are.

tems or internal testing via demonstrations to authorities / walkthrough	A ‘walkthrough test’ traces an operation step -by-step through the MIS or procedures from its inception to the final disposition. Process-oriented, focused and flexible plausibility check of
d. Fire drill	selected steps in a playbook. Dry runs are real-life simulation exercises where institutions test (selected) parts of the elements identified by the
e. Dry run	resolution authority based on a test crisis event, and identify areas for improvement to ensure that the resolution strategy can be implemented in an effective and timely manner.
f. Desktop exercise	Initial stage to enhance playbooks and ensure standardisation, consistency and alignment with the requirements for the documentation of key processes by individual steps, including timing, responsibilities and dependencies. Back-office testing where figures are reconciled between different documents in order to assess the accuracy and reliability of a data set. Review of the resolvability capabilities by internal audit, as part
g. Internal audit	of their institution ’ s assurance work for continued resolvability.

third-party verifi-cation	Review of the resolvability capabilities by a third-party expert. In-depth review on a specific topic carried out at the
i. Deep dive	institution’s premises over a pre-defined timeline. On-site inspections are investigations and testing performed by authorities with a pre-defined scope and timeframe and take
j. On-site inspec-tion	place on the premises of the institutions. Inspections should be intrusive while adhering to the principle of proportionality and aim to provide a detailed snapshot of the adequacy and execution of processes.

Annex 5 – Master playbook

High-level illustrative master playbook architecture:

Senior executive responsible for resolution planning (EBA GL 2022 01 para 55)

Master playbook

Description of the crisis contninuumframework

Key senior management decisions

Crisis coordination Board Governance Resolution tool Communication	Continuity	Content and information flow
E.g. Board Governance Bail-in/transfer Communication	OCIR (incl.

playbook playbook plan employee retention K plan) O O B Y FMI contingency A L plans

P B

U S

Funding in resolution Business

reorganisation plan

Requirements
Source	Requirement

Standards
Source	Requirement